I would like to respond to the 1st point/question:

1) I noticed in the DEMO books that Vacation pay earned for each employee totals to an expense account for wages. Is this the proper time to do it, or should it be totalled when the amount is actually paid (from VACATION PAID account) for each emp.?

IMHO, in a setup where employee vacation pay is both added (earned) and deducted (accrued for future payment), the earned should total to expenses. Why? By law (in Canada, anyway), every dollar you pay an employee incurs a proportional liability for the vacation pay on that dollar. With the vacation pay earned account totalling to expenses (rather than the Balance Sheet) you are properly recognizing the true total expense of that employees dollar of wages to include the statutory vacation pay. And, the expense of that vacation pay occurs at the same time as the dollar of wages.

On the other side, the vacation pay withheld (a credit) account totals to your liabilities, together with the vacation pay paid account (a debit). Together, the net balance of these two accurately reflects your current liability for vacation pay.